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Data for today’s episode is provided by Mercator Advisory Group’s Report: Corporate Banking: Modernize or Risk Disenfranchisement
Key Steps on the Road to Digital Modernization in Corporate Banking:
- Corporate banking businesses seeking to retain and expand their leading positions with corporates will need to speed up modernization efforts in key areas.
- Modernization efforts must include the development of digital corporate payments services and new payment types.
- Modernization efforts should be service-oriented to reflect the fact that consumers increasingly view banking as a service rather than a product.
- Compliance with open banking regulations and API enablement will be crucial as market demand drives open banking initiatives.
- Migration from existing messaging formats to ISO 20022 the growing global standard will be crucial.
- Cloud-based solutions involving both public and private clouds will be crucial to successful modernization efforts in corporate banking.
To satisfy shifting customer expectations and drive revenue in a rapidly changing industry, corporate banks need to modernize by offering new services and embracing the latest technologies. Their success or failure depends on it.
Low interest rates, shifting customer preferences, increased competition from fintechs, and rapid technological progress are fundamentally reshaping commercial banking. Financial institutions must adapt to the changing landscape or risk being left behind. Fortunately, from APIs to cloud-based solutions, there are many opportunities for corporate banks to innovate and improve.